Stanley Buenafe Gajete • June 17, 2020
ADB approves Philippines US$500-M loan accord to support 4Ps
Photo from Official Website of Asian Development Bank
MANILA, June 17- The Department of Finance confirmed on Wednesday the $500 million financing package the Philippine government is due to receive from the Asian Development Bank (ADB).
The package is intended to support the financial needs of Filipinos during the COVID-19 crisis mostly through the Expanded Social Assistance Project (ESAP) of the government.
The budget-support loan for the ESAP is part of the Philippine government’s external financing program for 2020 with $450 million of the fund proposed for speedy disbursement by next month.
“We thank the ADB for again extending its support to our sustained efforts to mitigate the impact of the COVID-19 pandemic on our economy and our people. This budget-support loan not only helps bridge our funding gap for our COVID-19 response but will also strengthen our social protection program as we restart our economy and help people get back on their feet amid the pandemic” Finance Secretary Carlos Dominguez said.
The ESAP aims to boost the government’s conditional cash transfer initiative called the Pantawid Pamilyang Pilipino Program (4Ps). It will also fund education and health grants for eligible 4Ps household-beneficiaries for a period of four years starting in 2020.
The Finance department also said that the ESAP loan covers a maturity period of 29 years inclusive of an 8-year grace period, bringing to $ 2.6 billion the total financing package extended by the ADB to the Philippines for its programs that address the COVID-19 crisis.
The loan agreement was signed on Monday by Dominguez and ADB Country Director for the Philippines Kelly Bird.
